Chinese markets plunged after the country held back its 2020 GDP target.

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4.39pm on May 22, 2020

Good night, see you next week!

That's about it from us at the Markets Live blog this week.

Thanks for reading, and thanks for your comments.

Have a great weekend!

4.35pm on May 22, 2020

Biggest movers

By Alex Druce

The biggest winners on the ASX 200 today were:

Smartgroup Corporation +7.59%

Corporate Travel Management +6.32%

Lynas Corporation +6%

Cooper Energy Ltd +5.13%

IDP Education +5.09%

The biggest losers on the ASX today were:

NRW Holdings - 9.36%

Unibail-Rodamco-Westfield SE -6.93%

Pilbara Minerals -5.66%

Mayne Pharma Group -4.49%

Bapcor -4.23%

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4.28pm on May 22, 2020

ASX limps home, but finishes higher for fourth straight week

By Alex Druce

The Australian share market finished higher for a fourth straight week, but only after limping into the close amid heightened tensions between Washington and Beijing.

The index heavyweights again kept the market down as the benchmark ASX 200 finished the day 53.4 points, or 0.96 per cent, lower at 5497.0.

All sectors bled red and the losses accelerated throughout the session. Just two of the top 27 companies - and none of the top 10 - finished higher.

Energy was the worst affected sector and lost a collective 2.24 per cent. Oil futures hit the skids after China failed to set an economic growth target for 2020 at the start of its week-long National People's Congress.

The big miners were also down, even after the promise of increased fiscal spending by China, and supply concerns over COVID-affected Brazil, boosted iron ore prices.

Rio Tinto finished 2 per cent lower at $91.30 and BHP lost 0.55 per cent to $34.32. Fortescue Metals edged 0.15 per cent lower to $13.58.

The banking giants also fell, with Commonwealth Bank, NAB, ANZ and Westpac each dropping between 0.59 per cent and 1.16 per cent.

The health sector badly underperformed as CSL plunged 2.36 per cent to $290.93, the firm’s lowest price since March 31.

A dour turn for oil futures and US futures snuffed out any chance the local market would stage a late comeback.

Analysts nominated geopolitical volatility and a tit-for-tat trade brawl as the main culprit for melting away optimism that fuelled a rise on Monday to Wednesday.

Markets jumped early in the week on positive signs a COVID-19 vaccine could be in the works, though investors were quick to realise the limited scope of Moderna’s trials.

Europe rose on positive news France and Germany could be coming to a reconciliation over a European recovery fund, though but global sentiment reversed when superpowers throw their weight around.

This included moves by Beijing to impose a new security law on Hong Kong, adding pressure to its already strained ties with the US.

Australia also found itself in the middle of a trade furore when China slapped new rules on iron ore inspections and reports, and reportedly told power stations told to avoid Australian coal.

The moves come as Australia continues to advocate for an inquiry into China’s handling of the coronavirus pandemic.

“What’s happened over the course of the week is that hopes have been dashed on what people thought was going to happen,” executive director of JP Morgan Asset Management Kerry Craig said.

“We’re seeing this familiar old risk of geopolitics and trade which has been dominating the narrative over the past couple of days.

Despite back to back sessions in the red, the ASX had enough of a runup to rise for a fourth straight week, adding 1.7 per cent.

The index has now climbed for eight of the past nine weeks since it hit a nadir on March 23.

CMC Markets chief strategist Michael McCarthy noted the ASX had again failed in the 5600 to 5550 zone.

“The (recent) rally has been at complete odds with the economic damage we are seeing here and around the globe,” Mr McCarthy said.

“So this failure (to break through 5600) again gives me some heart that this period of exuberant optimism is starting to fade.”

3.28pm on May 22, 2020

Market drags towards close

Moving towards the close, the ASX200 has remained firmly in the red, down 0.95 per cent or 52.3 points, wiping away any and all signs of the day’s earlier rally.

Healthcare continues to drag on the index, with the sector down 1.82 per cent thanks to a 2 per cent fall in CSL and a 1.4 per cent drop in Cochlear. Materials are also weighing on the last hour of trade, down 1 per cent.

No sectors are trading positively, with information technology coming closest, down just 0.17 per cent, buoyed by Seek and Afterpay.

Just 48 companies are trading above their closing price, with a remaining 151 down and two unchanged.

2.50pm on May 22, 2020

JobKeeper out by $60 billion

By Shane Wright

The Federal Treasury has admitted a "significant error" in the Morrison government's JobKeeper application form has greatly inflated the number of people using the scheme and its total cost.

In a statement released on its website, the department revealed the $130 billion program - the centrepiece of the government's response to the coronavirus pandemic - was likely to cost $70 billion and cover 3.5 million workers, rather than more than 6 million.

It said a tax office review of the enrolment forms used by businesses to apply for the scheme had found about 1000 firms had made "significant errors" when estimating the number of staff who would use the program.

The most common error was where firms, asked to report the number of employees they expected to go on to JobKeeper, actually reported the amount of money they expected to receive. More than 500 firms alone with one eligible worker reported "1500", which is the JobKeeper payment per person per fortnight.

"This reporting error has come to light as the ATO and Treasury have been analysing the amounts being paid out under the scheme, reconciling these with the estimates provided by enrolled businesses of the likely number of eligible employees," it said.

"It was not picked up by the ATO earlier as their primary focus in the first fortnight of JobKeeper payments was on ensuring that JobKeeper payments were paid promptly to those eligible for them, and not paid to those who were ineligible.

ASX slides lower again as weekend approaches

By Alex Druce

The ASX appears to be limping into the weekend during a choppy session blighted by heightened trade tensions.

The benchmark ASX 200 was down by as much as 42.4 points or 0.75 per cent in early afternoon trade, having earlier risen by 0.35 per cent. US stocks fell overnight amid the country's rising trade spat with China.

Chinese markets were sharply lower on Friday after the country dropped its GDP target for the first time. Dalian iron ore futures, however, rose more than 3 per cent as the country pledged to increase fiscal support for its economy.

Concerns are also lingering over iron ore supply from COVID-19 affected Brazil.

In local trade, only 48 companies were higher.

Nearly all of the top 25 listed companies were in the red - barring retail conglomerate Wesfarmers, which recovered from a sharp early decline to sit flat at $38.80. Fortescue Metals was also higher, up 0.22 per cent at $13.63.

Health stocks were the worst performers just before 1pm. CSL was 2.61 per cent lower at $290.24, its lowest since March 31.

The financials were 0.55 per cent lower and materials stocks dropped by a collective 0.59 per cent.

The bourse is still on track for a fourth straight week of gains, up 1.9 per cent for the combined five sessions so far.

1.42pm on May 22, 2020

Myer confirms all 60 stores will reopen next week

By Dominic Powell

Myer has confirmed to investors it will reopen its 60 stores by Wednesday, May 27, ending a shutdown which has stretched on for two months in some states.

The department store told the market after trials across 24 of its locations in recent weeks, it now felt comfortable enough to reopen all of its locations.

Myer first shut its doors on March 29 after government-enforced social distancing rules and a plunge in sales made it untenable to continue trading. Stores remained shut until early May, where they have been progressively reopened as restrictions have been eased in each state.

“All stores will operate in a manner that protects the health and wellbeing of customers and team members, with enhanced safety and cleaning measures,” the company said. “These enhanced measures include increased frequency of cleaning, protective items such as hand sanitiser stations, social distancing and contactless payments.”

Myer shares are up 11.1 per cent today to 30 cents, buoyed partially by this announcement and also by Wesfarmers’ shuttering of a number of Target stores, which act as a competitor to Myer in many locations.

1.01pm on May 22, 2020

Slater and Gordon settles Spotless class action

By Colin Kruger

Slater and Gordon said it has settled its class-action lawsuit Spotless - the cleaning services group now owned by Downer EDI - for $95 million.

The law firm launched the action in 2017 over a disastrous downgrade to its guidance in December 2015 which paved the way for its capitulation to the Downer bid at a much lower valuation.

The legal action alleged Spotless had misled the market by making a series of announcements without reasonable basis back in 2015.

“This is a good outcome for all investors and should be a reminder that all listed companies owe duties to their shareholders to disclose relevant information. I am very pleased with the outcome,” said Alice Court on whose behalf the lawsuit was filed.

In a statement to the ASX, Downer said the settlement is without admission of liability and is subject to Federal Court approval.

If approved, the settlement will result in a $35 million pre-tax impact on the company’s 2020 financial year results, it said.

Downer shares were last 2.75 per cent lower at $4.22. The company has climbed 45 per cent since the end of March but is still 47 per cent down for the year.

Slater and Gordon was trading up 3.66 per cent at 85 cents. It has shed just 8.38 per cent of its value in 2020.

12.44pm on May 22, 2020

Bell Potter upgrades Afterpay on new US user stats

By Colin Kruger

The Afterpay market exuberance is bubbling over again with Bell Potter upgrading the buy now pay later behemoth to a $51.50 price target after yesterday’s 5 million US user figure.

The broker said the COVID-19 cuts to its outlook on the stock appear to be overdone given the strong report.

And while there was no news on revenue or the quality of its receivables as the pandemic’s economic shock rolls in, the 10 million referrals Afterpay generated for its US retail clients amply demonstrates how its value extends beyond its role as a payment service.

“Afterpay confirmed it provided over 10 million referrals to its retail partners in the US, which is around 700 referrals a month per retailer - a feature many observers of the buy now pay later space underestimate, and that is the network effect of Afterpay,” said Bell Potter analyst Lafitani Sotirou.

Bell Potter upgraded both its earnings per share and US customer numbers for the financial years 2020, 2021 and 2022. The stock was retesting record highs this morning, trading as high as $45.04.